The banking system is a facade, a Hollywood set with nothing behind the fake buildings and scenery. There has been no escape from the financial crisis. For the banks, it is still to happen. All that has been accomplished is a cover-up of the true extent of the disaster. That has been accomplished at enormous cost to taxpayers. Unfortunately it has not produced a cure, merely a deferral. d.
The problem was always a solvency problem. It was treated as a liquidity problem. The banks now have ample liquidity but the insolvency problem is as large or larger than it has ever been. Deteriorating values in residential and commercial real estate continue and banks have not recognized, at least for accounting purposes, the decline in their underlying assets. The system has not been rescued. It is little more than one big “Weekend at Bernies” game, except this real version is not a comedy but a tragedy.
The Daily Bail has an article on the banking system and the government-condoned accounting fraud:
The 4 largest banks are insolvent many times over. Their puny and massively over-leveraged capital bases would not just be wiped out, they would be turned into negative multiples of the original equity.
Then take the next step and understand that these same criminally fraudulent and insolvent institutions, are paying their executives $144 billion in bonuses this year, based on false accounting that was endorsed by Congress and jammed down the throats of FASB in June of 2009.
Quite the mess being covered up. The only hope is for Bernie to wake up, but that is quite impossible because Bernie is dead. So is the banking system.